Morgan Stanley neutral on CHF in the near-term, remains core bullish over longer timeframe

Morgan Stanley neutral on CHF in the near-term, remains core bullish over a longer time-frame:

• "We remain constructive on CHF and see further upside from here. The bleak euro area outlook heading into winter should keep EUR/CHF under pressure following any near-term consolidation, and we see a low of 0.95 being reached by September," MS notes.
• "At the same time, the market is increasingly pricing more persistent inflation in Europe, with year-ahead electricity prices continuing to push higher. This has negative implications for the SNB, which has been using the currency to lean against inflationary pressures from abroad," MS adds.

This via the folks at eFX.

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